Sugar glut forces Kenya to seek export market
Kenya is set to become a net sugar exporter following a dramatic increase in production, which now totals 83,500 metric tonnes per month, exceeding local demand of 80,000 metric tonnes. Agriculture Principal Secretary Dr. Paul Ronoh praised the sector’s growth, attributing it to efforts by the Agriculture and Food Authority (AFA) and favorable conditions. The government is seeking parliamentary approval to export surplus sugar and stabilize prices through a new cane pricing committee.
Kenya is set to become a net sugar exporter after a surge in production led to a surplus of over 4,000 metric tonnes per month.
The industry’s production has skyrocketed from 17,000 metric tonnes last year to a staggering 83,500 metric tonnes per month, far exceeding the local demand of 80,000 metric tonnes.
Agriculture Principal Secretary Dr. Paul Ronoh hailed the sector’s transformation, attributing the success to the Agriculture and Food Authority-AFA’s commitment to addressing the challenges facing the industry.
“Our production now stands at 83,500 metric tonnes per month against the 80,000 requirements. We have excess to export. The sugarcane sector is well aligned, and we can now say no more sugar imports.” Dr. Ronoh said
To mitigate the impact on farmers, the government is seeking parliamentary approval to export surplus sugar.
“We are seeking parliament’s approval to sell sugar outside Kenya, positioning Kenya as a significant sugar exporter,” said AFA Chairman Connelly Serem
The increased production is attributed to government initiatives such as the subsidized fertilizer program and AFA measures, coupled with favourable rains. To ensure farmers benefit, the government is working to stabilize sugar prices.
“The sugar industry is expanding, with new plantations in Nandi and Trans Nzoia counties. Over 5,000 more acres are under cultivation this year,” added Serem.
Despite past import claims, AFA insists the local market is now fully supplied by domestic producers
To address price fluctuations, the government is establishing a new cane pricing committee. Sugarcane prices dropped to Ksh.4,950 in August from Ksh.5,100 the previous month.
The officials were speaking at the launch of the AFA new five-year strategic plan aimed at enhancing compliance and promoting food safety in Kenya. The 2023-2027 strategic plan seeks to scale up production and reduce over-reliance on agriculture imports.
New Agriculture and Livestock CS Dr. Andrew Karanja challenged AFA to ensure full implementation of the plan in collaboration with counties and private sector players
Source Link : https://www.citizen.digital/business/sugar-glut-forces-kenya-to-seek-export-market-n347830
Recommended for you
